From the IRS standpoint, you formed a partnership and need to file Form 1065 US Return of Partnership Income, which will include Schedules K-1 reporting the partnership activity for the year. You will include the information from Schedule K-1 on your personal return.
(If you completed Form 2353 and elected to be taxed as a corporation, you would file Form 1120-S instead.)
You will need TurboTax Business to prepare a business tax return.
Since you indicated that you and your business partner paid for the cost of running the partnership 50/50, the amount spent by each of you would be reported by the partnership as Contributions. This creates basis in the partnership for each partner. The property you purchased would be reported as a partnership asset and the rental activity would be business income/expense.
Due to the complexity of accurately reporting these items on a business return, you may benefit from the assistance of a local tax practitioner to advise on your particular situation.
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